THE AUCTION MARKET IN GENERAL

From reports of the property auction sales for the first 6 months of the year, there appears to be no clear pattern – conversion rates vary from sub 50% to over 70% across the country. Much is to do with managing Clients expectations – what is apparent, however, is that the market in all sectors is hardening – a factor that needs to be reflected in the guide prices and reserves. The closure of major brands in the High Street due to unsustainable rents and unjustifiable hikes in business rates is affecting the commercial sector while the continued onslaught by Government and Local Authorities on private Landlords is worrying small investors who are the lifeblood of the private letting sector.

NOT ALL AUCTIONEERS ARE THE SAME

Our last auction produced, as predicted, a shade over £20million (£20.2 actually)  making the total so far raised for Clients this year north of £100million at a conversion rate of over 70% – well above the national average on both counts.

As  the market gets tougher the difference between auctioneers becomes all too obvious. When analysing statistics it is important to compare lots CATALOGUED to those sold and not lots OFFERED to those sold. The practice of withdrawing lots prior to the sale because of a perceived “lack of interest” by some auctioneers in order to enhance the performance rates is still rife – sellers should be aware of the integrity and subterfuge when choosing who is to be privileged with their instructions.

BREXIT IS NOT THE PROBLEM